Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable compared to the same quarter last year, while the margin narrowed slightly. Operating cash flow improved sequentially, driving a stronger free cash flow conversion.
- Revenue was lower than the prior quarter but similar to a year ago. Operating cash flow increased from the previous quarter, and capital expenditure rose, resulting in free cash flow that was higher than the prior quarter but comparable to the year-ago period. The free cash flow margin improved sequentially but was slightly below the year-ago level.
- Compared to the prior quarter, revenue decreased while operating cash flow and free cash flow both improved, leading to a higher margin. Versus the same quarter last year, revenue was slightly higher, operating cash flow increased, capital expenditure was higher, and free cash flow was essentially unchanged, with a marginally lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$943.0M
Capital spending and related asset purchases.
FCF margin
20.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-03-31 | $6.5B | -$712.0M | $506.0M | -$1.2B | -18.6% |
| 2024-06-30 | $9.7B | $1.5B | $624.0M | $861.0M | 8.9% |
| 2024-09-30 | $10.5B | $1.5B | $505.0M | $981.0M | 9.3% |
| 2024-12-31 | $8.9B | $2.7B | $943.0M | $1.8B | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 254.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Improvement
Operating cash flow rose from the prior quarter and the year-ago period, supporting a higher free cash flow despite increased capital spending.
The sequential improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but similar to a year ago. Operating cash flow increased from the previous quarter, and capital expenditure rose, resulting in free cash flow that was higher than the prior quarter but comparable to the year-ago period. The free cash flow margin improved sequentially but was slightly below the year-ago level.
Compared to the prior quarter, revenue decreased while operating cash flow and free cash flow both improved, leading to a higher margin. Versus the same quarter last year, revenue was slightly higher, operating cash flow increased, capital expenditure was higher, and free cash flow was essentially unchanged, with a marginally lower margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from both the prior quarter and the year-ago period.